Moving from principles to action for energy supply that mitigates
against climate change requires a long-term perspective. Energy
infrastructure takes time to build up; new energy technologies take
time to develop. Policy shifts often also need many years to take
effect. In most world regions the transformation from fossil to
renewable energies will require additional investment and higher
supply costs over about twenty years

5.4 future investments in the power sector

It would require € 77 billion in investment for the Energy [R]evolution scenario to become reality (including investments for replacement after the economic lifetime of the plants) - approximately 1.9 billion annually or € 2 billion less in the Reference scenario (€ 79 billion). Under the Reference version, the levels of investment in conventional power plants add up to almost 32% while approx 68% would be invested in renewable energy and cogeneration (CHP) until 2050.

Under the Energy [R]evolution scenario, however, Israel would shift almost 85% of the entire investment towards renewables and cogeneration. Until 2030, the fossil fuel share of power sector investment would be focused mainly on CHP plants. The average annual investment in the power sector under the Energy [R]evolution scenario between today and 2050 would be approximately € 1.9 billion.

Because renewable energy has no fuel costs, however, the fuel cost savings in the Energy [R]evolution scenario reach a total of € 94 billion up to 2050, or € 2.4 billion per year, while the required investment are about the same level in both scenarios. These renewable energy sources would then go on to produce electricity without any further fuel costs beyond 2050, while the costs for coal and gas will continue to be a burden on national economies.